Micro, Small and Medium Enterprises (MSMEs) for EMPLOYMENT AND GREEN ECONOMY SERVICES FOR POVERTY ALLEVIATION in the Caribbean Caribbean Natural Resources Institute Nicole Leotaud

Context in the Caribbean The main economic sectors in the Caribbean are based on the use of natural resources – tourism and agriculture. Highly vulnerable. SMEs make up the majority of businesses in the Caribbean; they contribute 40% of the GDP and 50% of employment. In Trinidad and Tobago, micro and small enterprises make up 90%. Many MSMEs are in the informal sector and MICRO. MSMEs are particularly important for poor and vulnerable groups such as women and youth.

CANARI’s focus Rural community micro-enterprises are based on the use of natural resources and critical for community livelihoods – particularly poverty alleviation, food security.

Developing MSMEs in the Caribbean is a pathway to a green economy A Green Economy in the Caribbean context aims for long-term prosperity through equitable distribution of economic benefits and effective management of ecological resources; it is economically viable and resilient, self-directed, self-reliant, and pro-poor. MSMEs make up the majority of businesses, GDP contribution and employment. MSMEs reach marginalised groups and help address current social and economic inequities. MSMEs are flexible, resilient and innovative. MSME’s provide economic, social and environmental co-benefits.

The enabling institutional framework for MSMEs needs to be strengthened Consumer demand is good and increasing, but MSMEs have very weak market access – issues of quality control and standards, marketing, distribution MSMEs have poor / insecure access to resources – financing, insurance, land, technology, information The regulatory framework does not enable MSMEs – social support, decent jobs Government support agencies are not effectively addressing the needs of MSMEs, particularly community micro- enterprises

Capacities of MSMEs need to be strengthened Business management: core capacities needed Technical capacities: in sustainable use of resources, quality control and standards Partnerships: often competing for limited market (e.g. for community eco/heritage tourism, crafts) Culture: they are very wary of cooperatives (despite potential benefits in access to resources and joint marketing)

CANARI’s incubator for community micro- enterprises using natural resources Participatory process: driven by entrepreneurs - aimed at getting them “from zero to 10” - use a mix of facilitation, training, coaching, mentoring, action learning and small grants Connect to: other community entrepreneurs for peer learning; social enterprise SMEs for partnerships; support agencies Green economy approach: economic, social and environmental co-benefits; build resilience to climate change and natural disasters along the value chain Lessons communicated: to influence policy and practice

Lessons and recommendations Green economy approach: co-benefits + building resilience Coaching, mentoring and peer learning Micro-grants and micro-loans Marketing support and branding sustainable community products and services Using local/national NGOs as intermediaries – training trainers Participatory action learning and evaluation of impact Capacity building for and coordination of government and other support agencies and initiatives Social dialogue for policy and regulatory systems reform

Thank you! Nicole Leotaud Caribbean Natural Resources Institute (CANARI) YouTube and Facebook: CANARI Caribbean